{"id":175448,"date":"2021-02-12T19:21:00","date_gmt":"2021-02-13T00:21:00","guid":{"rendered":""},"modified":"2021-02-17T23:47:14","modified_gmt":"2021-02-18T04:47:14","slug":"a-free-state-first","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2021\/02\/12\/a-free-state-first\/","title":{"rendered":"A Free State First"},"content":{"rendered":"<p>  Maryland has become   <a href=\"https:\/\/arstechnica.com\/tech-policy\/2021\/02\/maryland-becomes-first-state-in-the-nation-to-tax-digital-advertising\/\">the first state in the nation to enact a tax on online advertisements<\/a>. <\/p>\n<p>  They had to override a veto though, because Governor Larry &#8220;Rat-F%$#&#8221; Hogan   vetoed the bill, because he promised no new taxes ever. <\/p>\n<p>Revenue is to be dedicated to education: <\/p>\n<blockquote>\n<p>    <span style=\"color: #2b00fe;\">Maryland today became the first state in the nation to impose a tax on     digital advertising revenue, overriding an earlier veto from the governor     and incurring the wrath of piles of Big Tech businesses that are all but     guaranteed to sue.   <\/span><\/p>\n<p><span style=\"color: #2b00fe;\">  <\/span><\/p>\n<p><span style=\"color: #2b00fe;\">    The bill (<a href=\"https:\/\/cdn.arstechnica.net\/wp-content\/uploads\/2021\/02\/hb0732E.pdf\">PDF<\/a>) levies a state tax of up to 10 percent on the annual gross revenues of     all digital advertising aimed at users inside Maryland state. Proceeds from     the new tax are explicitly earmarked to go into an     <a href=\"https:\/\/www.marylandmatters.org\/2021\/01\/12\/preparing-to-override-blueprint-bill-veto-lawmakers-say-state-has-enough-money-to-fund-it-through-26\/\">education fund<\/a>    dedicated to improving Maryland public schools.   <\/span><\/p>\n<p><span style=\"color: #2b00fe;\">  <\/span><\/p>\n<p><span style=\"color: #2b00fe;\">    &#8220;Right now, they don\u2019t contribute,&#8221; the bill&#8217;s primary sponsor, Sen. Bill     Ferguson (D) said of the bill. &#8220;These platforms that have grown fast, and so     enormously, should also have to contribute to the civic infrastructure that     helped them become so successful.&#8221;   <\/span><\/p>\n<p><span style=\"color: #2b00fe;\">  <\/span><\/p>\n<p><span style=\"color: #2b00fe;\">    Both chambers in the state&#8217;s General Assembly, its Senate and its House of     Delegates, approved the bill by wide majorities last year. Maryland Gov.     Larry Hogan     <a href=\"https:\/\/taxfoundation.org\/governor-hogan-vetoes-maryland-digital-advertising-tax-legislation\/\">vetoed<\/a>    the bill in May, but it had sufficiently high support in both chambers of     the legislature to pass a veto override, and both houses approved the veto     override this week.   <\/span><\/p>\n<\/blockquote>\n<p>It will work on a sliding scale, with larger companies, like Google and Facebook, paying up to 10% of gross revenue from the portion of their ads from Maryland, which constitutes about 1.8% of the US population.<\/p>\n<blockquote>\n<p><span style=\"color: #2b00fe;\">\u2026\u2026\u2026<\/span><\/p>\n<p><span style=\"color: #2b00fe;\">A coalition of small and medium businesses and trade groups <a href=\"https:\/\/www.marylandtaxfairness.org\/coalition-members\/\">launched a coalition<\/a> last year to lobby against the tax. The group, which bills itself as Marylanders for Tax Fairness, argues that the tax will &#8220;place an unnecessary and undue burden on the state&#8217;s entrepreneurs and job creators.&#8221;<\/span><\/p>\n<\/blockquote>\n<p>Yadda, yadda, yadda,<\/p>\n<p>The internet economy wants not to pay taxes.<\/p>\n<p>F%$# that.<\/p>\n<blockquote>\n<p><span style=\"color: #2b00fe;\">\u2026\u2026\u2026<\/span><\/p>\n<p><span style=\"color: #2b00fe;\">Among the coalition members are not only several Maryland-based businesses and organizations, including several local Chambers of Commerce, but also most of the large tech-related trade groups. All of the usual suspects who represent advertising, Internet, tech, telecom, or media firms are on the list, including the <a href=\"https:\/\/internetassociation.org\/our-members\/\">Internet Association<\/a>, the <a href=\"https:\/\/www.iab.com\/member-directory\/\">IAB<\/a>, the <a href=\"https:\/\/www.ncta.com\/about-ncta\">NCTA<\/a>, and <a href=\"http:\/\/technet.org\/membership\/members\">TechNet<\/a>. Those four groups represent every online firm from Amazon to Zillow and just about any brand you can name in between.<\/span><\/p>\n<p><span style=\"color: #2b00fe;\">The stakes for all the firms involved may go well beyond Maryland. Other states, including high-population <a href=\"https:\/\/www.stateandlocaltax.com\/digital-economy\/new-york-proposes-10-digital-advertising-tax\/\">New York<\/a>, are considering similar advertising revenue bills of their own.<\/span><\/p>\n<\/blockquote>\n<p>I&#8217;m not sure what the right rate is, though I do support an aggressively progressive tax. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Maryland has become the first state in the nation to enact a tax on online advertisements. They had to override a veto though, because Governor Larry &#8220;Rat-F%$#&#8221; Hogan vetoed the bill, because he promised no new taxes ever. Revenue is to be dedicated to education: Maryland today became the first state in the nation to &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[367,449,466,480],"class_list":["post-175448","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-internet","tag-legislation","tag-maryland","tag-taxes"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/175448"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=175448"}],"version-history":[{"count":1,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/175448\/revisions"}],"predecessor-version":[{"id":177391,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/175448\/revisions\/177391"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=175448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=175448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=175448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}